IAIM warns of overseas property risks

THE Irish Association of Investment Managers (IAIM) yesterday expressed concern about the advertising of overseas properties.

The IAIM said property firms are advertising overseas properties claiming investors can make huge returns, but many of these ads are being run without proper disclosures of risk.

"Given the strict standards of advertising and regulation that correctly apply to the investment and pensions industry, we believe a similar code should apply to the sale of property, whether it is overseas or domestic," IAIM retail funds chairman Gary Connolly said.

The association says it has written to Justice Minister Michael McDowell about its concerns. Mr Connolly said: "We have urged the minister to have a serious look at this area with a view to ultimately including overseas property sellers under some regulatory body."

Figures from the IAIM yesterday show its members managed €230 billion in assets on behalf of Irish and international clients at the end of last year.

Some €27.4bn in assets were held on behalf of retail clients, up 24% on the previous year. The association said net cash flows of €2.8bn were invested in retail products during 2005, a significant increase of 51% year-on-year.

Separately, figures from Bank if Ireland show that those who took out equity-based SSIA accounts will do better than savers with simple deposit-based SSIAs.

The bank said a customer who opened a Bank of Ireland Life equity SSIA in the last month of the scheme saving the maximum of €254 a month into its Growth Fund, would now have a balance of €18,965 - 15% more than a customer who opted for a fixed deposit rate SSIA and 20% more than an saver on the variable deposit rate.